Auto Insurance and a Total Loss

[Mach1]

I just had a car totaled and it had a lien on it, my insurance company is telling me that they cannot sell it back to me because of the lien, does anyone have any experience with this?

[Dave586]

what kind of lein? Auto loan?

[Mach1]

Yes, auto loan.

[A_A_G]

Well you technically didnt own the car so maybe thats why? That would be my guess, I know when you have a clear title they give you the option to buy it back.

[yellowstang]

So offer to buy it from the lein holder, they may sell it to you.

[MutherjuggZ]

I just had a car totaled and it had a lien on it, my insurance company is telling me that they cannot sell it back to me because of the lien, does anyone have any experience with this?

They can't pay you for the loss, they have to pay the leinholder AND you by way of two party check. If you pay off the loan yourself, get the title signed over to you, then you get the check minus the buy back and you keep the car. How much do you owe?

[A_A_G]

They can't pay you for the loss, they have to pay the leinholder AND you by way of two party check. If you pay off the loan yourself, get the title signed over to you, then you get the check minus the buy back and you keep the car. How much do you owe?

A check is issued directly to the leinholder in their name for the balance owed. If there is any money left over from the balance owed and the actual cash value of the vehicle, a seperate check is issued to the insured. The leinholder sends the title to the insurance company.

This is how I've seen it done on our claims when the car has a lein on it.

[MutherjuggZ]

A check is issued directly to the leinholder in their name for the balance owed. If there is any money left over from the balance owed and the actual cash value of the vehicle, a seperate check is issued to the insured. The leinholder sends the title to the insurance company.

This is how I've seen it done on our claims when the car has a lein on it.

There's more than one way a claim check can be disbursed.... I mentioned one of about a dozen different scenario options presented to my insureds in the past.

[Doug Hatton]

Agent fight!....Agent fight!....

[hookem06]

A check is issued directly to the leinholder in their name for the balance owed. If there is any money left over from the balance owed and the actual cash value of the vehicle, a seperate check is issued to the insured. The leinholder sends the title to the insurance company.

This is how I've seen it done on our claims when the car has a lein on it.

That's how my loss on my maxima went. As far as the process mentioned above.

My insurance company verified lien amount, sent the check directly to my bank.

The amount that was left over, after the lien was paid off was sent to me by check.

Oh and I had the option to buy it back also after the lien was paid off.

Now when my Polaris Razr was stolen, I received a 2 party check and I had to have a representative from my bank sign it and I had to also.

But I only owed $468 on it.


Good luck to the OP though.

[hookem06]

To the OP, don't take the first offer they come with.

[Jonny00GT]

Need more info. If you buy it back, does the lien holder still get paid off? Adjuster needs to walk you through it. A blanket,"If you owe money, you can't buy it back." makes no sense...

[GE]

To the OP, don't take the first offer they come with.

What if it's a fair and reasonable offer?

To the OP, it also depends on the company. When I was at State Farm, owner retention wasn't even an option for awhile. The only time you could was in limited circumstances on a recovered theft with minimal damage. Otherwise it got branded as a salvage title. Otherwise, what everyone else said. Insurer pays off the lien amount, lien holder sends you the title, and you fill out whatever paperwork with the insurer provided they're ok with an owner retained salvage.

[Mach1]

I was just wondering, I'm not too concerned about the buy back. As far as the original offer, should I tell them no I cannot replace it for that amount, or should I just ask them "Should I just get a lawyer to negotiate this"

[hookem06]

What if it's a fair and reasonable offer?

Yes, you are correct. If it's fair (fair market value, and comparable to his), then yea....

BUT 99% of the time, its going to be a low offer.

I was just wondering, I'm not too concerned about the buy back. As far as the original offer, should I tell them no I cannot replace it for that amount, or should I just ask them "Should I just get a lawyer to negotiate this"

No, the first offer they make (most of the time) will be low.

Don't go into asshole mode and such.
Just ask them where they are getting their figures from and you get your own figures together.

Whether you find a similar vehicle like yours at a dealership and get the the price....

Insurance companies will use Autosource, CCC and a few other to run comparable and get their prices and quotes.

Remember your deductible will be subtracted from that amount unless you work that out with the insurance agent or claims specialists